Starbucks Coffee

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Starbucks CoffeeCan Customers Breastfeed in a Coffee Shop?

Whole, Skim, or Breast milk?• August 8, 2004

– Silver Springs, Maryland Starbucks– “Nurse-in”: Mothers, Fathers, Babies– ~100 protestors (30 mothers)

• The Idea: 1 Month Earlier– Lorig Charkoudian– Breastfed 15 month old daughter

So, why Starbucks?

History of Starbucks

• Founded in 1971.• Coffee, tea, and spice store.• Named in honor of the first mate

in Herman Melville’s Moby Dick.

Howard Schultz• Kitchen appliance salesman

• Hired by Starbucks in 1982

• Trip to Milan in 1983

• Left the company in 1985

• Bought the company in 1987

Starbucks and Schultz

• IPO in 1992

• 8,337 stores

• 33 countries

• $4.1 billion in revenues

• Available in supermarkets and commercial airliners

Starbucks’ Culture

• Third Space

• Employee Focus

• Corporate Social Responsibility

http://www.starbucks.com/aboutus/environment.asp

• 6 Principles:– Provide a great work

environment and treat each other with respect and dignity.

– Embrace diversity as an essential component in the way we do business.

• 6 Principles:– Apply the highest standards

of excellence to the purchasing, roasting and fresh delivery of our coffee.

– Develop enthusiastically satisfied customers all of the time.

• 6 Principles:– Contribute positively to our

communities and our environment.

– Recognize that profitability is essential to our future success.

Who thought to target Starbucks?

Lorig Charkoudian• Conflict Resolution• Maryland’s Top 100 Women• Accomplishments

– Adjunct professor @ University of Baltimore

– 1995-present: Executive Director and Founder of Community Mediation Program

• Awards– 1999: Unsung Hero Award– 1997: Brick Award & Human Rights

Community Builder Award

Lorig’s Demands & Response• Breastfeeding policy in all Starbucks

• www.nurseatstarbucks.com – Letters to CEO, Orin C. Smith

“It’s about public acceptance of breastfeeding”

Lorig Charkoudian

Starbucks Response“Starbucks complies with all applicable state and local laws

regarding breastfeeding”

“Concerned customers should avert their eyes or move to a different

location within the store”Audrey Lincoff

Starbucks Spokeswoman

Breastfeeding Legislation• May 22, 2003: Maryland Governor

Robert L. Ehrlich, Jr. signed legislation regarding public breastfeeding

• Maryland Code Title XX, Subtitle XIIIa) A mother may breast-feed her child in

any public or private location in which the mother and child are authorized to be.

b) A person may not restrict or limit the right of a mother to breast-feed her child.

Breastfeeding Legislation• 16 states currently have no legislation• Language

– “irrespective of whether the nipple of the mother’s breast is uncovered during or incidental to the breastfeeding”

– “conducted in a modest manner”

• New Jersey and Connecticut– Fine or imprisonment for limiting a mother’s

right to breastfeed

• Hawaii and Illinois– Proceedings for limiting a mother’s right to

breastfeed

• Other legislation: Jury duty and sales tax exemption

Industry Responses• McDonald’s

– No comment

• Burger King– Corporate wide policy– “We want to be a family-friendly

place”Rob Doughty

Past Problems• 1995: Jeremy Dorosin• Faulty espresso machine

– Received “loaner”– Purchased wedding gift

• Chain of Complaint– Store manager– Corporate Service Supervisor– District manager

“Too little, too late” Jeremy Dorosin

In a matter of weeks…• May 5, 1995: Wall Street Journal• 3 radio shows• 3 television program appearances• New York Times article• www.starbucked.com

Timeline: ~6 weeks

Conflicting Customer Segments“If you look at the clientele during business hours, you’ll find a lot of young mothers with children who come to congregate and talk. If they want to continue to attract

this clientele, they need to change their policies.” Elizabeth Zifcak

“In a place where I am eating and drinking, that is the last thing I

want to see.” Kalen Johnson

Critical Issues

• Determine appropriate level of response.

• Identify costs (alienating customers).

• Determine corporate stance.• Remaining aware of and

communicating legislation changes.

• Corporate policy decision.

Stakeholders

• Starbucks executives.• Starbucks managers and

employees.• Breastfeeding advocates.• Starbucks customers.• Other corporate retailers.• Legislators.

Questions?

• Should Lorig’s group’s demands be taken seriously, or are they just another case of ridiculous requests which can be safely ignored by the company?

• Is there a reasonable way for Starbucks to satisfy all customer segments?

Questions?

• Assuming Starbucks adopts an official policy, how can it effectively communicate the policy throughout the company?

• When state laws which affect store operations change, how can Starbucks communicate the new laws to stores in that state to ensure that all stores are in compliance?

Discussion

Starbucks Coffee

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